Taking a Fresh Look at GLOBALFOUNDRIES

It has been a while since we last talked about GLOBALFOUNDRIES, and it is high time to do so. So why the long wait between updates? Well, I think the long and short of it is a lack of execution from their stated roadmaps from around 2009 on. When GF first came on the scene they had a very aggressive roadmap about where their process technology will be and how it will be implemented. I believe that GF first mentioned a working 28 nm process in a early 2011 timeframe. There was a lot of excitement in some corners as people expected next generation GPUs to be available around then using that process node.

Fab 1 is the facility where all 32 nm SOI and most 28 nm HKMG are produced.

Obviously GF did not get that particular process up and running as expected. In fact, they had some real issues getting 32 nm SOI running in a timely manner. Llano was the first product GF produced on that particular node, as well as plenty of test wafers of Bulldozer parts. Both were delayed from when they were initially expected to hit, and both had fabrication issues. Time and money can fix most things when it comes to process technology, and eventually GF was able to solve what issues they had on their end. 32 nm SOI/HKMG is producing like gangbusters. AMD has improved their designs on their end to make things a bit easier as well at GF.

While shoring up the 32 nm process was of extreme importance to GF, it seemingly took resources away from further developing 28 nm and below processes. While work was still being done on these products, the roadmap was far too aggressive for what they were able to accomplish. The hits just kept coming though. AMD cut back on 32nm orders, which had a financial impact on both companies. It was cheaper for AMD to renegotiate the contract and take a penalty rather than order chips that it simply could not sell. GF then had lots of line space open on 32 nm SOI (Dresden) that could not be filled. AMD then voided another contract in which they suffered a larger penalty by opting to potentially utilize a second source for 28 nm HKMG production of their CPUs and APUs. AMD obviously was very uncomfortable about where GF was with their 28 nm process.

During all of this time GF was working to get their Luther Forest FAB 8 up and running. Building a new FAB is no small task. This is a multi-billion dollar endeavor and any new FAB design will have complications. Happily for GF, the development of this FAB has gone along seemingly according to plan. The FAB has achieved every major milestone in construction and deployment. Still, the risks involved with a FAB that could reach around $8 billion+ are immense.

2012 was not exactly the year that GF expected, or hoped for. It was tough on them and their partners. They also had more expenses such as acquiring Chartered back in 2009 and then acquiring the rather significant stake that AMD had in the company in the first place. During this time ATIC has been pumping money into GF to keep it afloat as well as its aspirations at being a major player in the fabrication industry.